Refund of goods bought in Israel

RFW

Head_The_Ball wrote: »

Because it is a tax on the 'value added' to a product or service at each stage of manufacture or distribution etc.

If VAT is 20%:

A company buys raw materials for £100 plus (input) VAT = £120.

It sells the finished product for £200 + (output) VAT = £240.

It will pay on its VAT return to HM Customs and Excise.

£40 output VAT less £20 input VAT = £20.

So the net VAT is 20% or £20 of the 'Value Added' by that company in taking raw materials worth £100 to a finished product worth £200.

And so on up and down the chain of supply. VAT is levied on the 'Value Added' at each stage of the supply chain.

Wow. You explained VAT to me:D
I think my American friend was pointing out that adding "value" to something is akin to putting gold wheel trims on a car rather than making you pay an extra 20% for it.

angryparcel

VAT in Israel is 17%

http://www.vatlive.com/vat-rates/international-vat-and-gst-rates/